SUN INTERNATIONAL LIMITED
PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED

30 June 2012

REVENUE UP

EBITDA UP

ADJUST...
CONDENSED GROUP STATEMENTS OF COMPREHENSIVE INCOME
for the year ended 30 June

2012
Reviewed

%
change

2011
Audited

Reve...
Condensed group statements of comprehensive income for the year ended 30 June continued

R million
Profit for the year att...
CONDENSED GROUP STATEMENTS OF FINANCIAL POSITION
at 30 June

2012

PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 ...
CONDENSED GROUP STATEMENTS OF CASH FLOWS
for the year ended 30 June
R million

2012

Reviewed

2011
Audited

Cash generate...
GROUP STATEMENTS OF CHANGES IN EQUITY

R million

Share
capital
and
premium

Treasury
shares

Foreign
currency
Treasury
sh...
GROUP STATEMENTS OF CHANGES IN EQUITY
Share
based Availablefor-sale
payment
reserve
reserve

Reserve
for noncontrolling He...
SUPPLEMENTARY INFORMATION
for the year ended 30 June
R million
EBITDA RECONCILIATION
Operating profit
Expropriation of lan...
Supplementary information for the year ended 30 June continued

R million
Number of shares (‘000)
–  in issue
–  for EPS c...
ACCOUNTING POLICIES

PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012

The condensed consolidated financia...
SEGMENTAL ANALYSIS
R million

Revenue
2012
2011

GrandWest
Monticello
Sun City
Carnival City
Sibaya
Boardwalk
Wild Coast S...
Sibaya revenue at R989 million was up 9% as a result of increased footfall. EBITDA grew 11% to
R343 million due to the inc...
30 June 2012
R million

30 June 2011

Intragroup Third party Third party
Borrowings borrowings borrowings borrowings

SunW...
DEVELOPMENTS
Wild Coast Sun

The Wild Coast Sun upgrade project was completed on 30 June 2012 within budget.

Boardwalk

T...
OUTLOOK
The trading environment is expected to improve marginally in the forthcoming year, resulting in
improved revenues ...
www.suninternational.com

(“Sun International” or “the group” or “the company”)
Registration no: 1967/007528/06, Share cod...
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Sun International Ltd FY 2012 results

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Sun International Ltd FY 2012 results

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Sun International Ltd FY 2012 results

  1. 1. SUN INTERNATIONAL LIMITED PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 REVENUE UP EBITDA UP ADJUSTED HEPS UP FINAL DIVIDEND PER SHARE 10% 20% 3% 150 cents
  2. 2. CONDENSED GROUP STATEMENTS OF COMPREHENSIVE INCOME for the year ended 30 June 2012 Reviewed % change 2011 Audited Revenue Casino Rooms Food, beverage and other 7 645 1 003 1 106 10 11 10 6 981 904 1 007 9 754 (260) 10 Less: promotional allowances 8 892 (241) PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 R million 1 Benefit fund surplus Consumables and services Depreciation and amortisation Employee costs Levies and VAT on casino revenue Promotional and marketing costs Property and equipment rental Property costs SFIR minority equity option Other operational costs 9 494 24 (1 076) (818) (2 103) (1 774) (698) (95) (485) – (759) Operating profit Foreign exchange profits/(losses) Interest income Interest expense 1 710 79 37 (521) Profit before tax Tax 8 651 – (956) (769) (1 809) (1 583) (643) (81) (425) (75) (700) 1 305 (434) Profit for the year Other comprehensive income: Transfer of hedging reserve to statements of comprehensive income Tax on transfer of hedging reserve to statements of comprehensive income Currency translation Total comprehensive income for the year 871 6 1 610 (66) 43 (496) 1 091 (515) 51 576 2 13 – 233 (3) 15 1 106 601
  3. 3. Condensed group statements of comprehensive income for the year ended 30 June continued R million Profit for the year attributable to: Minorities Ordinary shareholders 2012 Reviewed % change 2011 Audited 143 433 871 Total comprehensive income for the year attributable to: Minorities Ordinary shareholders 239 632 576 317 789 73 1 106 146 455 601 Cents per share Earnings per share – basic – diluted Dividends per share % change Cents per share 669 664 240 46 461 456 200 2
  4. 4. CONDENSED GROUP STATEMENTS OF FINANCIAL POSITION at 30 June 2012 PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 EQUITY AND LIABILITIES Capital and reserves Ordinary shareholders’ equity Minorities’ interests Non current liabilities Deferred tax Borrowings Other non current liabilities Current liabilities Tax Accounts payable and other Borrowings Non current liabilities held for sale 38 57 543 752 18 38 423 738 1 217 – 79 11 721 10 848 1 496 1 227 1 517 1 300 2 817 423 4 257 506 468 2 936 420 3 824 101 1 289 2 422 114 1 086 2 972 4 172 – 35 8 998 8 031 11 721 3 Total liabilities 9 552 3 812 Total assets 8 868 440 48 35 35 126 5 186 Non current assets held for sale 9 595 479 48 23 38 148 2 723 Current assets Loans and receivables Tax Accounts receivable and other Cash and cash equivalents 2011 Audited 1 390 ASSETS Non current assets Property, plant and equipment Intangible assets Available-for-sale investment Loans and receivables Pension fund asset Deferred tax Reviewed 10 331 R million 10 848
  5. 5. CONDENSED GROUP STATEMENTS OF CASH FLOWS for the year ended 30 June R million 2012 Reviewed 2011 Audited Cash generated by operations before: Working capital changes 2 749 (15) 2 602 111 Cash generated by operations Tax paid 2 734 (531) 2 713 (527) 2 203 (1 160) 68 (1 158) 57 2 186 (966) 94 (1 271) (22) Cash generated by operating activities Cash utilised in investing activities Cash realised from investing activities Net cash outflow from financing activities Effect of exchange rates upon cash and cash equivalents Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year 10 742 21 721 Cash and cash equivalents at end of the year 752 742 Cash per the statements of financial position Assets held for sale 752 – 738 4 Cash and cash equivalents at end of the year 752 742 4
  6. 6. GROUP STATEMENTS OF CHANGES IN EQUITY R million Share capital and premium Treasury shares Foreign currency Treasury share translation reserve options 5 146 – – – 131 – – – – – – – (1 456) – – – – (72) – – – – – – (157) – (20) 61 – – 44 – – – – – 71 157 – – – – – – – – – – Balance at 30 June 2012 PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 Reviewed FOR THE YEAR ENDED 30 JUNE 2012 Balance at 30 June 2011 Total comprehensive income for the year Treasury share options purchased Treasury share options exercised Shares issued Deemed treasury shares purchased Vested shares Employee share based payments Release of share based payment reserve Delivery of share awards Acquisition of minorities’ interests Dividends paid 277 (1 528) (72) 228 Audited FOR THE YEAR ENDED 30 JUNE 2011 Balance at 30 June 2010 Total comprehensive income for the year SFIR minority eqity option Deemed treasury shares purchased Deemed treasury shares disposed Treasury share options purchased Shares disposed by Dinokana Employee share based payments Options exercised Release of share based payment reserve Delivery of share awards Acquisition of minorities’ interests Dividends paid 146 – – – – – – – – – – – – (1 456) – – – – – – – – – – – – (152) – – (1) 5 (16) 7 – – – – – – 58 13 – – – – – – – – – – – Balance at 30 June 2011 146 (1 456) (157) 71
  7. 7. GROUP STATEMENTS OF CHANGES IN EQUITY Share based Availablefor-sale payment reserve reserve Reserve for noncontrolling Hedging interests reserve Ordinary shareRetained holders’ Minorities’ equity interests earnings 193 – – – – – (44) 33 (21) – – – 4 – – – – – – – – – – – (1 470) – – – – – – – – – (736) – (2) – – – – – – – – – – – 4 188 632 – – – – – – 21 (8) – (199) 1 517 161 4 (2 206) (2) 4 634 91 – 75 – – – – 41 (2) (12) – – – 4 – – – – – – – – – – – – (1 471) – – – – – – – – – – 1 – (11) 9 – – – – – – – – – – – 193 4 (1 470) (2) Total equity 1 300 317 – – – – – – – – (82) (308) 2 817 1 106 (20) 61 131 (72) – 33 – (8) (818) (507) 1 496 1 227 2 723 3 908 433 – – – – 6 – 2 12 (3) – (170) 1 117 1 378 146 – – – – – – – – – 37 (261) 2 495 601 75 (1) 5 (16) 13 41 – – (3) 38 (431) 4 188 1 517 1 300 2 817 789 (20) 61 131 (72) – 33 – (8) (736) (199) 455 75 (1) 5 (16) 13 41 – – (3) 1 (170) 6
  8. 8. SUPPLEMENTARY INFORMATION for the year ended 30 June R million EBITDA RECONCILIATION Operating profit Expropriation of land – Monticello* Depreciation and amortisation Property and equipment rental Pre-opening Grayston lease rentals* Benefit fund surplus* Net loss/(profit) on disposal of property, plant and equipment* Pre-opening expenses* Retrenchment costs* SFIR minority equity option* Reversal of Employee Share Trusts’ consolidation* EBITDA PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 EBITDA margin (%)(i) 7 HEADLINE EARNINGS AND ADJUSTED HEADLINE EARNINGS RECONCILIATION Profit attributable to ordinary shareholders Headline earnings adjustments 2012 Reviewed 1 710 6 818 71 24 (24) % change 2011 Audited 6 1 610 – 769 81 – – 1 3 9 – 24 2 642 (1) – – 75 21 3 27 632 1 2 555 29 46 433 (1) Net loss/(profit) on disposal of property, plant and equipment 1 (1) Tax relief on the above items Minorities’ interests on the above items – – (3) 4 Headline earnings Adjusted headline earnings adjustments 633 (27) Pre-opening expenses Expropriation of land – Monticello Benefit fund surplus Retrenchment costs Pre-opening Grayston lease rentals SFIR minority equity option Foreign exchange (profits)/losses on intercompany loans 3 6 (24) 9 24 – – – – – – 75 (45) 12 Tax on the above items CGT Tax on termination of management contract Minorities’ interests on the above items Reversal of Employee Share Trusts’ consolidation(ii) 8 (46) (22) 49 21 (2) 8 (5) (27) 18 Adjusted headline earnings 616 46 20 433 87 512
  9. 9. Supplementary information for the year ended 30 June continued R million Number of shares (‘000) –  in issue –  for EPS calculation –  for diluted EPS calculation –  for adjusted headline EPS calculation(ii) –  for diluted adjusted headline EPS calculation(ii) Earnings per share (cents) –  basic earnings per share –  headline earnings per share –  adjusted headline earnings per share –  diluted basic earnings per share –  diluted headline earnings per share –  diluted adjusted headline earnings per share 2012 Reviewed % change 95 903 94 437 95 207 100 941 101 711 669 670 610 664 665 606 2011 Audited 93 877 93 826 94 949 100 546 101 669 45 45 20 46 46 20 461 461 509 456 456 504 Tax rate reconciliation (%) Effective tax rate SFIR minority equity option Preference share dividends STC Prior year over-provisions Foreign taxes Release of CGT on share premium distributions CGT Capital allowances and disallowed expenditure 33 – (4) (5) 2 1 4 – (3) 47 (2) (4) (7) 1 (1) – (1) (5) SA corporate tax rate 28 28 EBITDA to interest (times) Annualised borrowings to EBITDA (times) Net asset value per share (Rand) Capital expenditure 5.3 2.53 15.60 1 150 5.6 2.31 16.16 924 Capital commitments – contracted –  authorised but not contracted 625 1 021 913 948 1 646 1 861 To be spent in the 2013 financial year To be spent thereafter 1 459 187 1 586 275 Total commitments 1 646 1 861 *  tems identified above are included as other expenses and other income in the segmental analysis. I (i)  he EBITDA margin has been calculated on revenue before deducting promotional allowances. T (ii)  he consolidation of the Employee Share Trust is reversed in the calculation of adjusted headline earnings T as the group does not receive the economic benefits of the trust. 8
  10. 10. ACCOUNTING POLICIES PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 The condensed consolidated financial information for the year ended 30 June 2012 has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), the presentation and disclosure requirements of IAS 34 – Interim Financial Reporting, the Companies Act no.71 of 2008 and AC 500 standards issued by the Accounting Practices Board. The accounting policies applied are consistent with those adopted in the financial statements for the year ended 30 June 2011. 9 REVIEW OPINION The condensed consolidated financial information for the year ended 30 June 2012 has been reviewed by the group’s auditors, PricewaterhouseCoopers Inc. This review has been conducted in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, and their unmodified review opinion is available for inspection at the company’s registered office. EARNINGS AND DIVIDEND Revenue for the year ended 30 June 2012 was 10% ahead of last year at R9.8 billion, which is a satisfactory result in the difficult environment in which the group operates. EBITDA of R2.6 billion was 3% higher, with the EBITDA margin declining 1.7% to 27.8%. The results include a realised surplus of R24 million (recognised in terms of IAS 19 – Employee Costs) from the Sun International Benefit Fund as a consequence of the fund’s closure. Employee costs increased by 16% as a result of an actuarial valuation of the long service award (R54 million), post retirement medical aid valuation (R18 million) and an increase in the bonus provisions (R29 million). Property and equipment rental includes pre-opening rental for the Grayston hotel (R24 million). Property cost increased by 14% due to rates and taxes and utility costs. The weakening of the Rand against most currencies as well as the Chilean Peso against the US Dollar resulted in a foreign exchange profit of R79 million compared to a loss of R66 million last year. Net interest paid increased to R484 million (+7%) as a result of the higher debt levels in the current year. Tax of R434 million decreased by 16% due mainly to the release of a CGT provision raised in prior years on share premium distributions that are no longer required due to changes in the Income Tax Act. The effective tax rate, excluding non-deductible preference share dividends, STC and CGT was 28% (33%). The decrease in the effective tax rate is due to a R22 million tax credit resulting from the new management fee structure for SunWest and Worcester. Adjusted headline earnings of R616 million and diluted adjusted headline earnings per share of 606 cents are 20% above last year. Excluding the impact of foreign currency movements, adjusted headline earnings per share increased by 10%. The board has declared a final dividend of 150 cents per share.
  11. 11. SEGMENTAL ANALYSIS R million Revenue 2012 2011 GrandWest Monticello Sun City Carnival City Sibaya Boardwalk Wild Coast Sun Carousel Meropa Morula Windmill Federal Palace Botswana Zambia Swaziland Table Bay Flamingo Golden Valley Kalahari Sands Lesotho Other operating segments Management activities 1 782 1 354 1 288 1 024 989 451 362 316 274 264 238 173 170 167 156 153 146 132 116 111 35 590 Total operating segments Central office and other eliminations Other income(iv) Other expenses(iv) 10 291 9 469 (537) 1 652 1 064 1 198 973 904 429 288 308 266 256 220 149 164 147 167 160 131 123 110 109 39 612 (577) EBITDA 2012 2011 746 262 116 298 343 147 32 60 108 35 84 11 48 36 (13) 7 40 33 12 12 (19) 260 2 658 (16) – – EBITDA margin(%)# 2012 2011 41.9 20.6 9.4 29.3 35.0 32.6 10.4 19.2 39.4 14.1 35.3 6.4 28.2 21.6 (8.7) 4.6 27.4 25.8 11.1 11.3 (55.9) 44.1 37.9 15.7 13.8 30.6 34.6 37.8 10.2 21.7 42.5 17.2 35.9 6.7 29.9 18.4 (1.2) 16.9 26.7 26.1 16.3 14.4 (44.7) 54.2 2 552 26.5 27.7 3 – – – – – – – – 625 156 155 295 310 162 26 66 113 41 79 10 49 27 (2) 27 35 31 17 15 (17) 332 Operating profit 2012 2011 607 120 (2) 219 277 99 (4) 37 88 18 68 (14) 36 21 (20) (14) 28 16 (12) (1) (22) 233 1 778 (25) 24 (67) 493 22 40 209 240 130 (1) 36 94 21 60 (12) 38 11 (11) 2 23 11 (2) 3 (18) 317 1 706 (1) – (95) 9 754 8 892 (260) (241) 2 642 2 555 27.8 29.5 1 710 1 610 9 494 Promotional allowances 2 642 2 555 27.8 29.5 1 710 1 610 8 651 #    EBITDA is after deducting management fees and the margin calculated on net revenue (revenue less promotional allowances). References to current and prior year EBITDA margin in the commentary is based on the EBITDA margin as described above. (iv)  Refer to EBITDA reconciliation denoted* GAMING Gaming revenue was 10% ahead of last year at R7.1 billion with slots and tables revenue 10% and 9% up respectively. GrandWest revenue at R1 782 million was 8% ahead, driven primarily by improved slots revenues after the introduction of new replacement machines. EBITDA at R746 million was 19% ahead of last year with the EBITDA margin increasing 4% to 41.9% as a result of the new management fee structure. Excluding the revised management fees, the EBITDA margin would have been 0.4% lower than the previous year. Monticello revenue increased 27% to R1 354 million due to targeted promotional activity that resulted in increased market penetration. EBITDA increased 68% to R262 million as a result of higher revenues and cost containment improving the EBITDA margin by 4.9% to 20.6%. The Santiago gaming market continues to experience strong growth with Monticello’s share of the market at 69.1%, 5.7% below last year. The decrease is largely due to a competitive casino not having been fully operational in the prior year. Carnival City achieved revenue of R1 024 million, an increase of 5% over last year. EBITDA at R298 million was marginally ahead of last year and the EBITDA margin declined 1.3% to 29.3% as a result of certain costs being higher than inflation. The group’s share (Carnival City and Morula) of the Gauteng market declined marginally to 20.2%. 10
  12. 12. Sibaya revenue at R989 million was up 9% as a result of increased footfall. EBITDA grew 11% to R343 million due to the increased revenue and good cost containment. The EBITDA margin of 35% was marginally above last year. Sibaya’s share of the KwaZulu-Natal market was slightly higher than last year at 35.7%. Boardwalk revenue increased 5% to R451 million. EBITDA declined 9% to R147 million with an EBITDA margin of 32.6%, 5.2% below the previous year. While there has been some disruption to customers due to the expansion program, particularly the MVG parking area, on completion the business will be well positioned for future growth. HOTELS AND RESORTS In a hospitality environment that continues to be challenging, hotels and resorts achieved revenue of R2.6 billion, (+8%) with occupancy of 61.3%, 1.9% below last year. The average daily rate (ADR) increased by 12% to R1 228 due to improved room rate yields across most of the customer segments. Group occupancy (including gaming’s hotels) declined by 1.6% to 64.1% and the overall group ADR increased by 11% to R1 016. Sun City revenue grew 8% to R1 288 million, while occupancy was 1.8% lower at 64.2%. The ADR was however 15% ahead of last year at R1 525 due to better room rate yields and an improved accommodation mix. While departmental margins were satisfactory, indirect and fixed costs increased at a level greater than CPI, resulting in EBITDA being 25% below last year at R116 million, with a margin of 9.4%. The cost increases relate mainly to the appointment of key management staff, increased post retirement and long service award provisions, increased rates and utility tariffs and additional marketing and event costs. PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 Wild Coast Sun improved its revenue 26% to R362 million in the current year, and EBITDA 23% to R32 million, despite the disruption from the three year refurbishment program. Occupancy of 84.6% was achieved with an ADR of R540. 11 Table Bay Hotel experienced another difficult year, with occupancy effectively flat at 47.5%, and a 5% decline in the ADR to R1 956 due to substantial discounting within the premium hotel sector in the highly competitive Cape Town metropole. Revenue of R153 million was 4% below last year resulting in EBITDA of R7 million (R27 million). In Zambia, The Royal Livingstone and Zambezi Sun achieved an aggregate occupancy of 42.9% (45.2%) at an ADR of US$ 211, reflecting a 6% increase on last year. EBITDA at R36 million was 33% ahead of last year. Gaborone Sun and the other Botswana units achieved revenue of R170 million, (+4%) with EBITDA 2% lower than last year at R48 million. Margins decreased by 1.7% due to an above-inflation increase in utility and certain fixed overhead costs. In Nigeria, The Federal Palace generated revenue of R173 million, 16% above last year with an occupancy of 61.3% (62.9%) and an ADR of US$256, which was in line with the prior year. The casino showed encouraging revenue growth, but this was offset by a loss of occupancy in January and February 2012 following civil unrest in Lagos. EBITDA at R11 million was 10% ahead of last year, with the margin dilution mainly attributable to excessive diesel costs and regular power outages. MANAGEMENT ACTIVITIES Management fees and related income of R590 million was 4% lower than last year due to lower development fees and the restructure of the management contracts for SunWest and Worcester. EBITDA of R260 million was down 22% due to the aforementioned revised fee structure as well as increased employment and new business exploration costs. FINANCIAL POSITION The group’s borrowings at 30 June 2012 increased by R0.8 billion to R6.7 billion as a result of the funding for the Emfuleni and Wild Coast Sun developments, as well as new preference share funding for the acquisition of the additional interests in SunWest, Worcester and RAH. All group preference shares have now been refinanced and have durations of between 3 and 5 years.
  13. 13. 30 June 2012 R million 30 June 2011 Intragroup Third party Third party Borrowings borrowings borrowings borrowings SunWest International (Pty) Ltd (GrandWest Table Bay) SFI Resorts SA (Monticello) Afrisun Gauteng (Pty) Ltd (Carnival City) Emfuleni Resorts (Pty) Ltd (Boardwalk and FishRiver) Transkei Sun International Limited (Wild Coast) Afrisun KZN (Pty) Ltd (Sibaya) The Tourist Company of Nigeria Plc (Federal Palace) Worcester Casino (Pty) Ltd (Golden Valley) Mangaung Sun (Pty) Ltd (Windmill) Meropa Leisure and Entertainment (Pty) Ltd Teemane (Pty) Ltd (Flamingo) Swazispa Holdings Limited Lesotho Sun (Pty) Ltd Sun International Botswana (Pty) Ltd Sands Hotels (Pty) Ltd Central office 110 71 24 27 3 22 2 491 Employee Share Trusts 6 449 230 723 736 461 461 – (109) – 723 627 461 461 – 715 567 492 72 Borrowings per the statement of financial position (12) – 343 304 6 390 395 (138) 257 198 142 124 143 158 110 71 24 6 3 2 2 791 105 74 2 9 5 2 2 757 – – 6 449 230 5 695 215 6 679 Swazispa Holdings Limited (disclosed as held for sale) 355 304 – 6 679 5 910 – – – (2) 6 679 – 6 679 5 908 142 124 – – – – – (21) – (20) 300 R million Expansionary: Boardwalk Wild Coast Sun Grayston Hotel 465 77 44 586 Refurbishment: Wild Coast Sun Sun City Zambia Kalahari Sands Other ongoing asset replacement Total capital expenditure 95 39 19 10 163 401 1 150 Included in capital expenditure is R17 million capitalised interest for Boardwalk. The capitalisation rate (7.4%) used approximates the borrowing cost of the loans. 12
  14. 14. DEVELOPMENTS Wild Coast Sun The Wild Coast Sun upgrade project was completed on 30 June 2012 within budget. Boardwalk The first phase of the non-smokers’ casino renovation has been completed, and the construction of the new 140 room five star hotel, conference centre, parkade and retail complex is well underway. The installation of the new musical water extravaganza will commence during November 2012 and will be the opening attraction. While bad weather and other external factors have hampered construction on site, all parties are endeavouring to ensure that the development is completed on time in December 2012. The total capital expenditure remains at R1 billion. R597 million has been spent to 30 June 2012 and the balance will be incurred during the 2013 financial year. Grayston Hotel In November last year, the group secured a long-term lease for the 275 room Grayston Hotel in Sandton and the refurbishment commenced in January 2012. The scope of work includes a complete internal refurbishment, improved space planning, a new façade and swimming pool as well as upgrades to the landscaping. The total development cost of R250 million is to be funded jointly by the group and the property’s owners. Completion of the refurbishment remains on track for December 2012, with an expected opening to the public in January 2013. PROFIT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 30 June 2012 SUNWEST EXCLUSIVITY 13 GrandWest’s exclusivity in the Cape Metropole expired in December 2010. Various amendments to the Western Cape Gambling and Racing Act, Act 4 of 1996, as well as the Regulations made in terms thereof, were published for public information and comment in the Provincial Gazette Extraordinary No. 6967 on 16 March 2012. The group has submitted its comments to the amended Bills and Regulations. There have been no further developments. RESTRUCTURE OF COMMON INTERESTS WITH GRAND PARADE INVESTMENTS LIMITED “GPI” As previously advised to shareholders, Sun International and GPI restructured certain of their common interests. All conditions were fulfilled and the transaction was implemented on 1 December 2011. OFFER TO RAH MINORITY SHAREHOLDERS As at 27 January 2012, being the original closing date of the RAH offer, 97.1% of the RAH minorities had accepted the offer thereby increasing the group’s interest in RAH to 99.0%. As announced on SENS on 20 January 2012, the group exercised its entitlement to compulsorily acquire the remaining RAH minority shares in accordance with the terms of section 124 of the Companies Act no. 71 of 2008 (“the Companies Act”). Shareholders holding collectively the remaining 1% of the outstanding RAH shares have brought an action against the company in terms of s124(2) of the Companies Act in which they contend that the offer consideration is not fair. The company is defending the action.
  15. 15. OUTLOOK The trading environment is expected to improve marginally in the forthcoming year, resulting in improved revenues for both the Gaming division, and for Hotels and Resorts. Monticello will continue to increase its contribution to the group’s results and the significant capital spent in a number of properties will stand the group in good stead as the market recovers. The group continues to investigate a number of gaming opportunities outside Southern Africa, and believes that its expertise and reputation places it in a strong position to win licences in carefully selected jurisdictions. The outlook has not been reviewed or reported on by the company’s auditors. For and on behalf of the board MV Moosa Chairman G Collins Acting Chief Executive 24 August 2012 DECLARATION OF FINAL DIVIDEND Notice is hereby given that a final gross dividend of 150 cents per share for the year ended 30 June 2012 has been declared, payable to shareholders recorded in the register of the company at the close of business on the record date appearing below. This dividend is declared out of income reserves. There are 102 937 688 ordinary shares in issue and ranking for dividend at the date of this declaration. The company has utilised STC credits to the value of 150 cents per share to offset the 15% withholding tax, resulting in a net dividend of 150 cents per share. The salient dates applicable to the final dividend are as follows: 2012 Last day to trade cum final dividend First day to trade ex final dividend Record date Payment date Friday, Monday, Friday, Tuesday, 14 17 21 25 September September September September No share certificates may be dematerialised or rematerialised between Monday, 17 September and Friday, 21 September both days inclusive. Dividend cheques will be posted and electronic payments made, where applicable, to certificated shareholders on the payment date. Dematerialised shareholders will have their accounts with their Central Securities Depository Participant or broker credited on the payment date. Sun International Limited’s tax reference number is: 9875/186/71/1. By order of the board CA Reddiar Group Secretary 24 August 2012 Registered office: Fredman Drive, Sandown, Sandton 2196 27 Sponsor: Investec Bank Limited Transfer secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg 2001 The profit announcement was prepared under the supervision of the CFO, RP Becker CA(SA) MBA. Directors: MV Moosa (Chairman), IN Matthews (Lead Independent Director), G Collins (Acting Chief Executive)*, ZBM Bassa, RP Becker (Chief Financial Officer)*, PL Campher, Dr NN Gwagwa, BLM Makgabo-Fiskerstrand, KH Mazwai*, B Modise, LM Mojela, DM Nurek, GR Rosenthal *Executive Group Secretary: CA Reddiar 14
  16. 16. www.suninternational.com (“Sun International” or “the group” or “the company”) Registration no: 1967/007528/06, Share code: SUI, ISIN: ZAE 000097580

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